An article posted by a 27 year-old real estate broker on his blog has drawn a lot of attention and triggered a high-level probe into the situation of Shenzhen’s mortgage loans.
The blogger named ‘Fengyu’ claims that Shenzhen has been suffering from a string of housing mortgage defaults which could bring RMB1.5 billion worth of bad loans to commercial lenders in Shekou district alone and up to hundreds billion financial losses for Shenzhen as a whole.
According to ‘Fengyu’, a considerable amount of purchases made by property investors at the last quarter of the previous year and early this year were purely speculative.
Investors are angered by the fact that the average housing prices in Shenzhen has declined more than 20% in the past six months plus problems concerning decoration quality, community management and green land ratio.
It is confirmed by lenders that some property owners have collectively decided to suspend their monthly mortgage payments.